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August 23, 2013  Fri 10:32 AM CT

LEAP: SEE CHART GET CHAIN FIND STRATEGIES
A trader apparently believes that any downside in Leap Wireless will be limited through next spring.

optionMONSTER systems detected the sale of 5,000 April 13 puts for $0.36 this morning. This is clearly a new position, as there was no open interest at that strike before the trade appeared.

The put selling is a bet that LEAP will hold above $13 through expiration in mid-April 2014. The trader is also taking on the risk of having to buy shares if they fall below that strike price.

LEAP is up fractionally today at $15.79. The wireless carrier hit a high of $17.51 in mid-July after gapping up from $8 a few days earlier.
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Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

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